Work Place Products Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 30,000 shares of preferred 2% stock, $100 par and 500,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations:
July | 1 | Issued 212,000 shares of common stock at par for cash. |
1 | Issued 300 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. | |
Aug. | 7. | Issued 66,400 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $148,100, $521,840 and $166,700 respectively. |
Sept. | 20. | Issued 15,000 shares of preferred stock at $108 for cash. |
Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
As the chart of account is not given for exact wordings, I have used Chart of accounts normally used.
Journals are as below:
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